The flood of politicians has begun. The presidential race is heating up and all the candidates are on their soapboxes pledging to lower college costs and solve the student loan debt crisis in America. We decided to throw our hat in the ring. Our campaign promise…to end the student loan debt crisis one family at a time!
Parents, do you remember filling out your college application? You probably used a pencil or typewriter (a what?) to fill out the paper application from your school or schools of choice. You mailed them in and then you waited. Today as with everything else in our lives, the process is automated (not a surprise). The Common Application, referred to in its shortened form as the Common App, has changed the way students are applying to college, and we have some things you need to know.
In early June of 2015, the Department of Education announced revised Federal Need Analysis Methodology to determine a student’s EFC for the 2016/17 award year. The result is not good news for middle class families hoping to receive need-based aid! We haven’t seen much in the media about this topic so we at Capstone wanted to make sure you have the information you need to “Know before you go!”
We all know universities come in different flavors – state schools/ivy leagues, privates/publics, colleges/universities, etc. And we know the different types have different admission standards your student needs to meet in order to get into them. We also are VERY aware of the different price tags for each. A four year in state university currently costs around $19,000 per year and a four year private college around $42,000 according to “Trends in College Pricing 2014” published by the College Board.
What you might not be fully aware of though is schools do NOT award financial aid in the same way from school to school.
In our previous blog, you learned what FAFSA stands for, what it is used for, and what some filing tips you should be aware of. A lot of your questions may remain unanswered though…
If you are the parent of a college-bound student, FAFSA will become a necessary acronym to know during your college search and throughout your student’s college years. FAFSA stands for Free Application for Federal Student Aid, a Federal Student Aid filing, and is used to calculate a family’s Expected Family Contribution (EFC) toward college expenses.
Many families recognize the value of 529 savings plans. 529 plans provide an easy way to put aside money for college that will earn interest tax-free (when used for qualified college expenses). Plus by setting up direct deposits, parents can create a deposit schedule for their plan and pretty much forget about it. However, when the time comes to make withdrawals from that plan, questions can arise.
Check out the second post of our 5-part video series, featuring our co-founder, Joe Messinger, CFP®, and Susan Kannenwischer, Director of Financial at Capital University. In this video, Joe and Susan discuss important factors about the Free Application for Federal Student Aid, otherwise commonly known as the FAFSA.
By now, we’ve all seen this storyline unfold before – a recent college grad is buried in six figures of student loans, has no foreseeable job prospects, and has been forced to move back in with Mom and Dad. More and more, college-educated adults are returning to the nest, putting off first-time home purchases, and delaying marriage and having children. In large part, this is because they are financially overburdened with student loans – a growing trend that isn’t good for individuals, nor our economy as a whole.
So, how’d we get here and how do we fix it?
If you are part of what is considered to be Generation X (like me), you likely know that you have 20 or 30 years until your so-called retirement at age 65 — or at least that’s what the government and most pension plans peg as a “normal” age of retirement. It seems everyone is always talking about retirement, especially in the media. However, we’re often too busy to listen, as we focus on other aspects of life, such as advancing careers, growing families and businesses, and sending kids to college, all while trying to accumulate a modest nest egg along the way.
So why address a topic that is seemingly more appropriate for your baby boomer parents?
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Capstone Wealth Partners is a fee-only independent Registered Investment Advisor in Columbus, Ohio. We are financial planners for college-bound families.
The Capstone Blog offers up our best ideas on how to save and pay for college, all while staying on track for a confident retirement.
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